Diamond Sports Group Severs Ties with Bally's in Reorganization Plan

Author:

Patricia Bell

|Published: March 4th, 2024

Diamond Sports Group, the owner of 19 regional sports networks (RSNs) in the United States, has submitted its reorganization plan as part of Chapter 11 bankruptcy proceedings.

The plan includes the termination of the naming rights deal signed with Bally's Corp in 2020.

As outlined in the court filing, Bally's commercial agreement will be rejected, and Bally's will release any claims against Diamond.

The contract specifies that Bally's will be "forever barred from asserting any claims against Diamond," and Diamond can continue using Bally's name at no cost until the end of the upcoming Major League Baseball season.

The court will conduct a hearing on the reorganization plan on April 18.

Diamond Sports Group went bankrupt to restructure $8.6 billion in debt in March 2023.

The plan involves securing a new naming-rights partner and affiliate deals with DirecTV, Charter, and Comcast, contributing approximately 81% of Diamond's distribution revenue together.

Diamond recently had its $495 million settlement from Sinclair and a $450 million debtor-in-possession financing package approved by the court.

As part of the restructuring, Amazon will provide Diamond with an initial $115 million as convertible debt, with an option for an additional $50 million.

Amazon gains streaming rights to Diamond's properties, including 11 NHL teams, 15 NBA teams, and five MLB clubs.